Rigid voting recommendations on directors' commitments risk
boards losing out on talent
The UK Corporate Governance Code notes the importance of
directors – particularly non-executive directors (NEDs)
– being able to dedicate enough time to the companies on
whose boards they serve. One of the main principles in Section B of
the code, 'Effectiveness', states: 'All directors
should be able to allocate sufficient time to the company to
discharge their responsibilities effectively.'
The related provisions describe how the chair and other NEDs
should disclose their other 'significant commitments' at
the time of their appointment and update the board with any
changes.
For the company secretary who struggles to arrange board
meetings that everyone can attend, whether a year in advance or for
some urgent matter outside of the usual timetable, the diary
juggling can be a real headache.
